Tips for getting the best vehicle finance interest rate

Tips for getting the best vehicle finance interest rate

Getting vehicle finance offers individuals a simple solution for getting to drive the car of their dreams.

Before you sign on the dotted line you need to familiarise yourself with a few facts. Buying a new car means that you need to be savvy and you need to as much research as possible.

Make sure that you do the necessary research so that the company through which you choose to finance your new car is registered with the National Credit Regulator.

When it comes to getting the best vehicle finance interest rate, a good place to start would be by knowing the difference between a fixed or linked interest rate. A fixed interest rate is often favoured because it means that repayments will remain unaffected by interest rate fluctuations.

It’s important to keep in mind that the longer the contract, the more you end up paying in interest and fees.

It’s important that you buy a car you can afford to maintain, with accessible spare parts. You also need to think about how often you travel per month.

Interest rates on car loans are personalised, with the final rate being based on your current risk profile to the bank.

It is the banks, not the dealership that ultimately decide on your interest rate.

Tips for getting the best vehicle finance interest rate:

If your credit profile shows that you have stability – your own property, you have savings and you are marred – you pose less of a risk to the bank and your interest rate may be lower.

You could use a loan origination company to apply to all leading banks for the best vehicle finance interest rate.

Keeping a clean credit record requires diligence and will put in you is a good position when applying for vehicle finance.

The Finance and Insurance (F&I) representative, who you will find at the dealership, may have some room to negotiate a better rate for you.